# Cash management 2013 Practice paper 2 question 1.4

Registered Posts: 26
I need help on the cash management level 4 AAT practice paper 2 question 1.4 investment income, the answer is £3575 for period 7. But I don’t know how to work it out to get that answer. Can someone please help?

• Registered Posts: 12

I need help on the cash management level 4 AAT practice paper 2 question 1.4 investment income, the answer is £3575 for period 7. But I don’t know how to work it out to get that answer. Can someone please help?

Hey!

I totally agree, i am stuggling with this figure also!
Probably a long shot as it was SO long ago but I dont suppose you could help explain this to me?

• Registered Posts: 8
Hi all
For the investment income you have to add on the percentage figures - 2.8% + 0.5% = 3.3%
Times this by the amount so 0.033 x 1300000 = 42900 - this is the yearly interest so monthly = 42900/12=3575

Can anyone help me get the mortgage payment of £42,000?
• Registered Posts: 12
Hi,

I can help with that.

To work out the £42,000 mortgage payment figure you need to:
4,000,000 x 90% = 3,600,000 / 120 months (10 years) = 30,000/month (CAPITAL)
3,600,000 X 4% = 144,000/12 months = 12,000 (INTEREST)